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Swedish central bank should not sell off bond portfolio, rate-setter Skingsley says

Swedish central bank should not sell off bond portfolio, rate-setter Skingsley says
Swedish central bank should not sell off bond portfolio, rate-setter Skingsley says   -   Copyright  Thomson Reuters 2022
By Reuters

STOCKHOLM – Sweden’s central bank should not actively sell bonds in its asset portfolio as it shifts toward policy tightening in the face of surging inflation, Deputy Governor Cecilia Skingsley said on Friday.

“One reason … is that the maturity of our assets is relatively short,” Skingsley said in the text of a speech published by the central bank.

“But another reason is that the aggregate international experience with QT is very limited, and there are very few data points for estimating the effects.”